Oracle shares declined on February 23, 2026, following a report from The Information questioning the Stargate AI data center initiative. This project is a joint venture between Oracle, OpenAI, and SoftBank valued at over $500 billion. The partnership was originally announced in January 2025.
The report alleges the joint venture maintains minimal staff. It further claims the entity lacks direct control over any data centers. These details raised significant investor concerns regarding the execution of the strategic partnership.
Negative sentiment increased following a class-action lawsuit filed by Pomerantz LLP. The lawsuit alleges Oracle made misleading statements about its AI infrastructure strategy. It claims these statements led to significant capital expenditure increases without generating corresponding near-term revenue growth.